Nord Motors Raises Concern Over Bank’s Refusal to Finance Locally Assembled Vehicles, Ongoing Legal Dispute Involving ₦700m Debit

November 11, 2025
By Ayinde Adeleke

Nord Motors, a Nigerian vehicle manufacturer, has alleged discriminatory lending practices by a commercial bank in the country, claiming the bank declined to finance the purchase of its locally assembled vehicles while recommending foreign brands instead.

The company said a business owner in the oil and gas sector recently expressed interest in acquiring two units of the Nord Max pickup truck after test rides and positive feedback from peers in the industry. However, upon approaching his bank for financing, the bank reportedly informed him that it does not provide loans for Made-in-Nigeria vehicles.

According to Nord Motors, the same bank suggested alternative foreign brands to the customer. The company noted that several of the brands reportedly recommended are registered with the Bureau of Public Procurement (BPP) as Made-in-Nigeria assemblers, raising questions about consistency in classification and lending policies within the financial sector.

Nord Motors described the development as part of a broader challenge faced by local manufacturers, claiming that institutional lending patterns continue to favour foreign automotive brands over Nigerian companies, despite local assembly capacity and government advocacy for industrial growth.

This disclosure comes amid an ongoing legal dispute between Nord Motors and Stanbic IBTC Bank regarding a separate transaction.

In April 2025, Nord Motors alleged that Stanbic IBTC unilaterally debited ₦700 million from its account while a matter concerning a 2022 Letter of Credit (LC) was still being contested in court. The company stated that the LC had been fully settled at the prevailing official exchange rate of between ₦430 and ₦480 per dollar at the time of the transaction.

However, the bank later claimed that the foreign exchange component of the LC had not been supplied by the Central Bank of Nigeria (CBN) and recalculated the payment at an exchange rate exceeding ₦1,600 per dollar. Nord Motors disputes this claim and maintains that the LC transaction had been closed based on the earlier exchange rate. The company has since challenged the bank’s position in court.

The alleged ₦700 million debit occurred while the legal proceedings were ongoing.

Nord Motors said it remains committed to pursuing the matter through the judicial process, expressing confidence that the courts will resolve the dispute.

As of the time of filing this report, Stanbic IBTC Bank has not issued a public statement in response to the allegations.

The issue comes at a time when federal authorities have emphasised the need to increase domestic production capacity and support local industries in line with the government’s stated targets for economic expansion.

Source: X | OluwatobiajayiJ